Can I Cancel My Professional Liability Insurance Policy?
Apr 25, 2021
Should you cancel your Professional Liability Insurance Policy?
With the pandemic still hanging around, and most parts of the world under restrictions or lockdowns, it can be tempting for businesses to cut costs to be able to save on expenses that may not seem as necessary at the moment. Cancelling Business Insurance, such as your Professional Liability Insurance policy, may be tempting. The truth is, while that might help you save costs, there are some downsides to it. In this blog, we explain whether you can cancel your Professional Liability Insurance policy and what the negative effects of doing so might be.
Can you cancel your Professional Liability Insurance policy?
Yes. Every business has a right to cancel its Professional Liability policy and can do so by getting in contact with their insurance provider to ask them to cancel their Professional Liability policy. Since a lot of policies are on a pro-rata basis you might get a partial refund, but this varies across insurance companies, so it's best to verify this before cancelling your policy.
What happens if I cancel my Professional Liability Insurance policy?
If you do decide to go ahead and cancel your Professional Liability policy, it's important to remember that most insurance companies won’t allow you to temporarily pause and then resume your Professional Liability Insurance at will. If you cancel it, you will have to buy a new policy in the event you would like to have this coverage at a future time.
There are also some consequences that you might have to face if you cancel your Professional Liability Insurance. The following are a couple of factors you may want to consider:
- You might have to pay higher premiums in the form of additional charges and fees when you decide to get a new Professional Liability policy.
- As soon as you cancel your Professional Liability policy, you lose any protection, even from claims made when the policy was active.
- You might have to pay a short rate fee for the early cancellation of your Professional Liability policy.
- You may need a tail rider policy to cover past claims if you start with new coverage.
How can I save money on my Professional Liability Insurance policy?
If you need to cut down on costs, one option you could explore is talking to your insurance provider to adjust your Professional Liability premiums to save you money. Since the premiums depend on factors like the amount of coverage needed, the number of employees and projected revenues, you can always show a reduction in revenue or lessen the amount of coverage you need - which will drive down the cost of your Professional Liability Insurance premiums.
Learn more about the cost of Professional Liability Insurance, "How Much Does Professional Liability Insurance Cost?"
You can also customize your Professional Liability policy to exclude what you don’t need coverage for. Our team of experts here at Foxquilt can help review your business insurance needs, help get you a tailored quote and ensure that you only pay for what you need. Get started on your online quote today.
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